Homework Answers
Fixed overhead becomes a part of cost of goods sold under absorption costing but not under variable costing
Hence, Income statement 1 is based on variable costing as cost of goods sold is lower
2.Production was greater than sales as income under absorption costing is higher
3.amount of fixed overhead = 4152-3125
=$1027
Add Answer to:
On your way to a meeting with the board of directors, your assistant provides you with...
Exercise 17.32 On your way to a meeting with the board of directors, your assistant provides...
Exercise 17.32 On your way to a meeting with the board of directors, your assistant provides you with last month's income statements-one based on the variable costing method and one based on the absorption costing method. Unfortunately, your assistant, who is new, has used absorption costing terminology for both income statements. Sales Cost of goods sold Other expenses Net income Income Statement 1 $8,598 $3,009 4,195 7,204 $1,394 Income Statement 2 $8,598 $4,041 3,069 7,110 $1,488 Which income statement is...
Exercise 17.31 Inventory data for a manufacturing firm for the month of January follows. One set...
Exercise 17.31 Inventory data for a manufacturing firm for the month of January follows. One set of figures is based on variable costing and the other set is based on absorption costing. Balance Sheet Balance Sheet Inventory, January 1 Inventory, January 31 $18,580 8,240 $36,670 17,170 Which balance sheet is based on the absorption costing method? Balance sheet is based on the absorption costing method. LINK TO TEXT During January, was production equal to, greater than, or less than sales...
has no 4.80 2.00 1:20 QUESTION 1 At the start of period one Tommy , opening...
has no 4.80 2.00 1:20 QUESTION 1 At the start of period one Tommy , opening inventories. Tommy sells his product for £1a por mut incurring the following mit Variable Costs: f Direet materials Direct labour Variable Production overheads Fixed production overheads are £3,000 fixed selling overheads are £1,000, and production and sales are as follows; Pdt Pd2 Sales Production 1600 units Overhead absorption rates are calculated based on budgeted production of 1500 units. Required: 1800 units 1200 units 1400...
Bagawan Berhad started producing Product A on 1 January 2018. The unit selling price and cost...
Bagawan Berhad started producing Product A on 1 January 2018. The unit selling price and cost of Product A for the month of January 2018 as follows: (RM/unit) Selling price 5.90 Direct material 1.20 Direct labour 1.40 0.70 Variable production overheads Variable selling and administrative expenses 0.15 i) Fixed production overheads were budgeted at RM308,000 per month and were absorbed based on the number of units produced. Actual fixed production overheads of Product A were the same as the absorbed...
Louie's Meals produces frozen meals, which it sells for $8 each. The company uses the FIFO...
Louie's Meals produces frozen meals, which it sells for $8
each. The company uses the FIFO inventory costing method, and it
computes a new monthly fixed manufacturing overhead rate based on
the actual number of meals produced that month. All costs and
production levels are exactly as planned. The following data are
from the company's first two months in business:
(Click the icon to view the data.)
Data Table
January
February
Sales. . . . . . . . ....
management accounting
Calculate costs using appropriate techniques of cost analysis to prepare an income statement using variable and absorption costs. UCK Furniture produce one product - desks. Each desk is budgeted to require 4 kg of wood at £3 per kg, 4 hours of labour at £2 per hour, and variable production overheads of £5 per unit. Fixed production overheads are budgeted at £20,000 per month and average production is estimated to be 10,000 units per month. The selling price is fixed at £35 per unit....
Income Statements under Absorption and Variable Costing Shawnee Motors Inc, assembles and sells snowmobile engines. The...
Income Statements under Absorption and Variable Costing Shawnee Motors Inc, assembles and sells snowmobile engines. The company began operations on August 1 and operated at 100% of capacity during the first month. The following data summarize the results for August: $600,000 Sales (2,000 units) Production costs (2,400 units): Direct materials Direct labor $300,000 115,200 43,200 21,600 Variable factory overhead Fixed factory overhead 480,000 Selling and administrative expenses: Variable selling and administrative expenses $50,000 22,000 Fixed selling and administrative expenses 72,000...
The vice president of sales at Wildlife Corporation has received the income statement for January 2009....
The vice president of sales at Wildlife Corporation has received the income statement for January 2009. This statement, which was prepared on the basis of variable costing, is reproduced below. The firm has just adopted a variable costing system for internal reporting. Wildlife Corporation Income Statement For the Month of January 2009 $2,400,000 1,200,000 $1,200,000 Sales revenues Variable cost of goods sold Contribution margin Fixed costs Manufacturing Selling and administrative Operating income S600,000 400,000 1,000,000 $ 200,000 The controller attached...
Show Your Works How You DO It: Fill out 3 white blanks Larry's Foods produces frozen...
Show Your Works How You DO It: Fill out 3 white blanks Larry's Foods produces frozen meals, which it sells for $7 each. The company uses the FIFO inventory costing method, and it computes a new monthly fixed manufacturing overhead rate based on the actual number of meals produced that month. All costs and production levels are exactly as planned. The following data are from the company's first two months in business: Requirement 2a. Prepare separate monthly income statements for...
Mario's Foods produces frozen meals, which it sells for $8 each. The company uses the FIFO...
Mario's Foods produces frozen meals, which it sells for $8 each. The company uses the FIFO inventory costing method, and it computes a new monthly fixed manufacturing overhead rate based on the actual number of meals produced that month. All costs and production levels are exactly as planned. The following data are from the company's first two months in business (Click the icon to view the data.) Requirements 1. Compute the product cost per meal produced under absorption costing and...
Exercise 17.32 On your way to a meeting with the board of directors, your assistant provides you with last month's income statements-one based on the variable costing method and one based on the absorption costing method. Unfortunately, your assistant, who is new, has used absorption costing terminology for both income statements. Sales Cost of goods sold Other expenses Net income Income Statement 1 $8,598 $3,009 4,195 7,204 $1,394 Income Statement 2 $8,598 $4,041 3,069 7,110 $1,488 Which income statement is...
Exercise 17.31 Inventory data for a manufacturing firm for the month of January follows. One set of figures is based on variable costing and the other set is based on absorption costing. Balance Sheet Balance Sheet Inventory, January 1 Inventory, January 31 $18,580 8,240 $36,670 17,170 Which balance sheet is based on the absorption costing method? Balance sheet is based on the absorption costing method. LINK TO TEXT During January, was production equal to, greater than, or less than sales...
has no 4.80 2.00 1:20 QUESTION 1 At the start of period one Tommy , opening inventories. Tommy sells his product for £1a por mut incurring the following mit Variable Costs: f Direet materials Direct labour Variable Production overheads Fixed production overheads are £3,000 fixed selling overheads are £1,000, and production and sales are as follows; Pdt Pd2 Sales Production 1600 units Overhead absorption rates are calculated based on budgeted production of 1500 units. Required: 1800 units 1200 units 1400...
Bagawan Berhad started producing Product A on 1 January 2018. The unit selling price and cost of Product A for the month of January 2018 as follows: (RM/unit) Selling price 5.90 Direct material 1.20 Direct labour 1.40 0.70 Variable production overheads Variable selling and administrative expenses 0.15 i) Fixed production overheads were budgeted at RM308,000 per month and were absorbed based on the number of units produced. Actual fixed production overheads of Product A were the same as the absorbed...
Louie's Meals produces frozen meals, which it sells for $8
each. The company uses the FIFO inventory costing method, and it
computes a new monthly fixed manufacturing overhead rate based on
the actual number of meals produced that month. All costs and
production levels are exactly as planned. The following data are
from the company's first two months in business:
(Click the icon to view the data.)
Data Table
January
February
Sales. . . . . . . . ....
Income Statements under Absorption and Variable Costing Shawnee Motors Inc, assembles and sells snowmobile engines. The company began operations on August 1 and operated at 100% of capacity during the first month. The following data summarize the results for August: $600,000 Sales (2,000 units) Production costs (2,400 units): Direct materials Direct labor $300,000 115,200 43,200 21,600 Variable factory overhead Fixed factory overhead 480,000 Selling and administrative expenses: Variable selling and administrative expenses $50,000 22,000 Fixed selling and administrative expenses 72,000...
The vice president of sales at Wildlife Corporation has received the income statement for January 2009. This statement, which was prepared on the basis of variable costing, is reproduced below. The firm has just adopted a variable costing system for internal reporting. Wildlife Corporation Income Statement For the Month of January 2009 $2,400,000 1,200,000 $1,200,000 Sales revenues Variable cost of goods sold Contribution margin Fixed costs Manufacturing Selling and administrative Operating income S600,000 400,000 1,000,000 $ 200,000 The controller attached...
Show Your Works How You DO It: Fill out 3 white blanks Larry's Foods produces frozen meals, which it sells for $7 each. The company uses the FIFO inventory costing method, and it computes a new monthly fixed manufacturing overhead rate based on the actual number of meals produced that month. All costs and production levels are exactly as planned. The following data are from the company's first two months in business: Requirement 2a. Prepare separate monthly income statements for...
Mario's Foods produces frozen meals, which it sells for $8 each. The company uses the FIFO inventory costing method, and it computes a new monthly fixed manufacturing overhead rate based on the actual number of meals produced that month. All costs and production levels are exactly as planned. The following data are from the company's first two months in business (Click the icon to view the data.) Requirements 1. Compute the product cost per meal produced under absorption costing and...
Most questions answered within 3 hours.
-
Rice Products in Bangladesh
Business behavior is derived in large part from the basic cultural
environment...
asked 11 minutes ago -
The following base sequence is found for a mRNA fragment from
wild-type E. coli: 5'- UAUCAGUAGAUAAUGUAACC-3'...
asked 34 minutes ago -
For this exercise, round all regression parameters to three
decimal places.
One of the two tables...
asked 52 minutes ago -
What is the 5% level of significance for mean = 3.60, standard
deviation = 0.94, and...
asked 56 minutes ago -
Prior to beginning work on this discussion, please read the
article by Hayley Peterson, 15 Companies...
asked 1 hour ago -
Which pair of aqueous solutions, when mixed, will form a
precipitate?
A) NaNO3 and AgC2H3O2
B)...
asked 1 hour ago -
1-Write an algorithm to get two numbers from the user (as
inputs) and calculate the sum...
asked 5 hours ago -
Define white-collar crime. What is the difference between
offender and offense-based definitions of white-collar crime? What...
asked 5 hours ago -
Consider a reaction which is 1st order with respect to A and 1st
order with respect...
asked 5 hours ago -
c++
The length of the hypotenuse of a right-angled triangle is the
square root of the...
asked 6 hours ago -
When a metal rod is heated, not only its resistance but also its
length and cross‐sectional...
asked 6 hours ago -
write a c++ program that computes the L^1 - Norm of a given
vector (L^1 norm...
asked 6 hours ago